As EON looks to the future, it must strike a balance between maintaining its core strengths and adapting to the changing landscape of the automotive industry.

By embracing the opportunities presented by EVs and digital technologies while staying true to its commitment to customer service and sustainability, EON can continue to thrive for the next 40 years and beyond.

This established player in the automotive industry is undergoing a transformative journey under the leadership of its young CEO, Akkbar Danial.

At just 40 years old, Akkbar is bringing fresh perspectives and new blood to the company as it navigates the rapidly evolving automotive landscape.Known for its multi-brand distribution model and extensive retail network, EON has to navigate fundamental changes to the foundation of the industry – a marketplace of buyers whose habits are adapting to the digital world and a business model that is finding it difficult to adapt to the reality of an electric future, not just in technology but in the way it conducts business.

Adapting to Online Sales and Agency Models

In Malaysia, several automakers are beginning to embrace online sales and agency models, reflecting a significant shift in how vehicles are marketed and sold.

While we all know that Tesla sells their cars exclusively online, traditional brands like Mercedes-Benz and Volvo are following suit.Mercedes-Benz Malaysia has introduced an online sales platform that allows customers to browse, configure, and purchase vehicles directly through their website.

Buyers now have access to every car in the national stockpile, allowing for more choice and flexibility. Potential owners can customize features and even secure financing options without stepping foot in a dealership.

Similarly, Volvo has adopted an agency model for their all-electric models that not only simplifies the buying process but also ensures that customers receive consistent pricing and service quality.

These shifts towards online sales and agency models are part of a broader trend in the automotive industry, driven by the need for greater efficiency, customer satisfaction and, to some extent, the changing nature of the vehicles themselves.

Adapting to the Changing Revenue Streams of EVs

One key question that arises is how this transition will impact EON’s after-sales revenue streams. EVs generally require less frequent servicing due to fewer moving parts, which could lead to a decline in the income that has historically flowed from routine maintenance and repairs.

EON must carefully consider how it will adapt its business model to compensate for this potential loss of revenue while still providing exceptional customer service.Speaking to Electronikar, Akkbar admitted that income from smart brand EV is healthy as the cars leave the showroom but considerably more anemic when it comes to putting cars into service bays.

Diversifying Revenue Streams

The management team at EON is aware of these challenges and is taking proactive steps to enhance the customer experience and diversify their income base:

Used Car Business

EON is leveraging its nationwide network to enhance its presence in the used car market. By exploring its website as an online used car marketplace and partnering with platforms like myTukar and Carsome, EON aims to capture a larger share of the pre-owned vehicle segment. The Pre-Owned Vehicle business can prove to be lucrative thanks to its flexibility.

Financial Services

EON has established EON Capital, a digital platform for multi-brand car financing solutions. Their finance arm offers features like digital application forms, live application tracking, bundled product offerings, and instant credit scoring. Getting financing is a major pain point for many potential buyers, and this initiative allows EON to diversify its revenue streams while enhancing customer convenience.

Accessories and Parts

EON is optimizing sales for new car accessories and out-of-warranty spare parts through its EON Accessories Centre. By centralizing its parts and accessories business, EON can generate additional revenue from its existing customer base and tap into the aftermarket demand for vehicle customization.

Leasing and Rental

Through DRB-HICOM EZ-DRIVE, EON provides leasing and rental services for both existing and brand-new vehicles. This diversification allows EON to cater to customers who prefer alternative ownership models, such as short-term rentals or long-term leases. By offering a range of mobility solutions, EON can better meet the evolving needs of its customer base.

Commercial Vehicles and Machinery

EON’s portfolio includes commercial vehicles and machinery, catering to the needs of businesses and fleet operators. By maintaining a diverse range of offerings, EON can weather fluctuations in demand across different segments and tap into various revenue streams.By diversifying its business across used cars, financial services, accessories, leasing, and commercial vehicles, EON is positioning itself for long-term growth and resilience in the face of industry challenges. These initiatives allow EON to leverage its existing strengths while exploring new opportunities for revenue generation and customer engagement.

Embracing Sustainability

EON is making efforts to be more eco-friendly and sustainable as part of its transformation. Some of their initiatives include:

• Opening a special showroom just for Proton electric cars to showcase their electric models and educate people about EVs.
• Partnering with AEON, a big retailer, to work on sustainability projects together, allowing them to reach more people and spread awareness about being environmentally responsible.
• Planning various activities and events focused on sustainability, such as planting trees, cleaning up beaches, and other eco-friendly initiatives that get employees, customers, and the community involved.
• Organizing a running event together with POS Malaysia, the national postal service, with a sustainability theme to bring together people from different backgrounds to support environmental causes while also promoting healthy lifestyles.
• Ensuring EON’s sustainability efforts are a key part of their overall brand image and messaging, consistently communicating their environmental commitments across their website, ads, and other communications to show they are serious about being a green company and attract customers who care about these issues.

EON recognizes that being eco-friendly and sustainable is important, especially in the car industry.

By launching green initiatives, partnering with other companies, and making it a core part of their brand, they are trying to reduce their environmental impact and appeal to customers who prioritize sustainability.

These plans show they are adapting to the changing priorities of consumers and the need for companies to be more responsible.In conclusion, EON is undergoing a transformative journey to adapt to the rapidly evolving automotive landscape.

By embracing digital technologies, diversifying revenue streams, and embracing sustainability, EON is positioning itself for long-term growth and resilience.

As the company navigates the challenges and opportunities of the future, it must strike a balance between maintaining its core strengths and adapting to the changing needs of its customers and the industry as a whole.